Pomerantz Law Firm Initiates Class Action Lawsuit Against CTO Realty Growth, Inc.
In a significant legal development, Pomerantz LLP has officially initiated a class action lawsuit against CTO Realty Growth, Inc. (traded on NYSE under the symbol CTO) and several of its high-ranking officers. This legal action was filed in the United States District Court for the Middle District of Florida and is indexed under docket number 25-cv-01516. The lawsuit aims to represent all individuals and entities, excluding the Defendants, who purchased or acquired CTO securities from February 18, 2021, to June 24, 2025, both dates included, asserting the right to recover damages due to alleged violations of federal securities laws.
The allegations point toward substantial breaches under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 along with Rule 10b-5. Investors who acquired shares during this specified period now find themselves with until October 7, 2025, to petition the Court for Lead Plaintiff status in the class action. Interested parties can access a copy of the formal complaint through the firm's website. Those seeking additional details can contact Danielle Peyton directly at the provided email or phone number, ensuring to include relevant information such as their mailing address and number of shares purchased.
CTO Realty Growth, Inc. is categorized as a publicly traded real estate investment trust (REIT) which manages a portfolio that is largely focused on retail properties situated predominantly in expanding markets across the United States. The transition to REIT status for CTO occurred in February 2021. By the end of 2024, the company had amassed ownership of 23 income-producing properties spread over seven states, including the notable Ashford Lane retail and dining complex located in Atlanta, Georgia.
Under regulations established by the U.S. Securities and Exchange Commission (SEC), entities classified as REITs are mandated to distribute at least 90% of their taxable income to shareholders annually in the form of dividends. The allure for investors lies in the tax-efficient structure REITs provide, which spares them from most corporate income taxes. In this vein, CTO has accentuated how its REIT operation entitles stockholders to potentially lucrative dividends.
To evaluate its financial performance, CTO employs a metric denoted as Adjusted Funds from Operations (AFFO). This metric is generally illustrative of a REIT's funds from operations, adjusted for recurring expenditures essential for maintaining the integrity of its assets. Financial analysts favor AFFO because it recognizes ongoing costs alongside additional income streams, such as rent escalations. Consequently, AFFO serves as a more reliable measure when calculating present values and forecasting the REIT's capability to sustain dividend payouts.
The lawsuit’s complaint asserts that during the Class Period, CTO's executives allegedly made misleading and deceptive statements regarding the firm’s operations, business conditions, and adherence to compliance regulations. Specifically, top officials made unsubstantiated claims concerning the reliability of CTO's dividends, implying they were more sustainable than they truly were. The Plaintiff claims CTO engaged in deceptive practices which inflated its AFFO and exaggerated the actual profitability of key assets like the Ashford Lane property.
The Wolfpack Research report, published on June 25, 2025, painted a troubling picture of CTO, drawing unfavorable comparisons to B. Riley, a financial services firm recently hammered by losses and regulatory scrutiny. The report raised serious questions about CTO's operational cash flow, indicating that the company had not generated sufficient revenue to cover its recurring capital expenses or dividends since becoming a REIT. It pointed to various alarming strategies used by CTO, including dilutive measures that saw a 70% increase in outstanding shares since December 2022 to cover substantial dividend shortages.
In reaction to these unsettling revelations, CTO’s stock price took a noticeable hit, dropping $0.98 or 5.42% to settle at $17.10 per share on the same day the Wolfpack Report was released. Pomerantz LLP, with its principal offices located in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, has built a reputation as a leading firm in handling corporate litigation, securities, and antitrust class actions. Established over 85 years ago by the late Abraham L. Pomerantz, the firm continues to advocate for the rights of those affected by securities fraud and corporate misconduct, having secured billions in damages for class members over its long history.
To learn more about this case or other potential actions against CTO Realty, shareholders can't afford to miss the opportunity to connect with Pomerantz LLP for informed legal guidance. Remember, previous results do not ensure future outcomes. Contact details and more information can be found at Pomerantz's official website.
The allegations point toward substantial breaches under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 along with Rule 10b-5. Investors who acquired shares during this specified period now find themselves with until October 7, 2025, to petition the Court for Lead Plaintiff status in the class action. Interested parties can access a copy of the formal complaint through the firm's website. Those seeking additional details can contact Danielle Peyton directly at the provided email or phone number, ensuring to include relevant information such as their mailing address and number of shares purchased.
CTO Realty Growth, Inc. is categorized as a publicly traded real estate investment trust (REIT) which manages a portfolio that is largely focused on retail properties situated predominantly in expanding markets across the United States. The transition to REIT status for CTO occurred in February 2021. By the end of 2024, the company had amassed ownership of 23 income-producing properties spread over seven states, including the notable Ashford Lane retail and dining complex located in Atlanta, Georgia.
Under regulations established by the U.S. Securities and Exchange Commission (SEC), entities classified as REITs are mandated to distribute at least 90% of their taxable income to shareholders annually in the form of dividends. The allure for investors lies in the tax-efficient structure REITs provide, which spares them from most corporate income taxes. In this vein, CTO has accentuated how its REIT operation entitles stockholders to potentially lucrative dividends.
To evaluate its financial performance, CTO employs a metric denoted as Adjusted Funds from Operations (AFFO). This metric is generally illustrative of a REIT's funds from operations, adjusted for recurring expenditures essential for maintaining the integrity of its assets. Financial analysts favor AFFO because it recognizes ongoing costs alongside additional income streams, such as rent escalations. Consequently, AFFO serves as a more reliable measure when calculating present values and forecasting the REIT's capability to sustain dividend payouts.
The lawsuit’s complaint asserts that during the Class Period, CTO's executives allegedly made misleading and deceptive statements regarding the firm’s operations, business conditions, and adherence to compliance regulations. Specifically, top officials made unsubstantiated claims concerning the reliability of CTO's dividends, implying they were more sustainable than they truly were. The Plaintiff claims CTO engaged in deceptive practices which inflated its AFFO and exaggerated the actual profitability of key assets like the Ashford Lane property.
The Wolfpack Research report, published on June 25, 2025, painted a troubling picture of CTO, drawing unfavorable comparisons to B. Riley, a financial services firm recently hammered by losses and regulatory scrutiny. The report raised serious questions about CTO's operational cash flow, indicating that the company had not generated sufficient revenue to cover its recurring capital expenses or dividends since becoming a REIT. It pointed to various alarming strategies used by CTO, including dilutive measures that saw a 70% increase in outstanding shares since December 2022 to cover substantial dividend shortages.
In reaction to these unsettling revelations, CTO’s stock price took a noticeable hit, dropping $0.98 or 5.42% to settle at $17.10 per share on the same day the Wolfpack Report was released. Pomerantz LLP, with its principal offices located in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, has built a reputation as a leading firm in handling corporate litigation, securities, and antitrust class actions. Established over 85 years ago by the late Abraham L. Pomerantz, the firm continues to advocate for the rights of those affected by securities fraud and corporate misconduct, having secured billions in damages for class members over its long history.
To learn more about this case or other potential actions against CTO Realty, shareholders can't afford to miss the opportunity to connect with Pomerantz LLP for informed legal guidance. Remember, previous results do not ensure future outcomes. Contact details and more information can be found at Pomerantz's official website.
Topics Financial Services & Investing）
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